City Developments Posts 31% Rise In Q1 Net Profit To S$165m

Source : Channel NewsAsia, 14 May 2008

Property developer City Developments has reported a 31 percent rise in first-quarter earnings to S$165 million.

The results came at the lower end of expectations. Revenue fell 1.3 percent to about S$759 million.

The Singapore property market cooled substantially in the first quarter in the wake of the US sub-prime crisis late last year.

The government also scrapped a deferred payment scheme, which allowed home buyers to purchase properties with a small initial downpayment, with the bulk coming when the properties are ready to be occupied.

With the government's moves to cool the red-hot market last year, private home prices have also risen at a slower pace.

City Developments said it deferred the launch of new projects in the first quarter due to the continued poor sentiment.

But going forward, City Developments said it is optimistic about its outlook. It said the uncertainty in the global economy is only temporary.

It believes it can remain profitable in the next 12 months, citing profits yet to be recognised from residential developments sold over the last three years. - CNA/ms